1. Male or female, age 18-75 years (both inclusive) at the time of signing informed consent

2. Subjects diagnosed with type 2 diabetes and on stable treatment in a period of 6 weeks prior to screening with metformin ≥ 1500 mg (or maximum tolerated dose ≥ 1000 mg)

3. HbA1c 7.5 - 11.0 % (both inclusive) (screening)

4. HbA1c 7.0 - 10.5 % (both inclusive) (randomisation)

5. BMI 18.5-35 kg/m2 (both inclusive)

1. Other types of diabetes besides Type 2 diabetes

2. A history of acute diabetes complications within 6 months before screening

3. A history of acute or chronic pancreatitis, symptomatic gallbladder disease, or other high-risk factors that may lead to pancreatitis

4. Personal or family history of medullary thyroid cancer (MTC) or multiple endocrine neoplasia syndrome type 2 (MEN 2)

5. Acute coronary or cerebrovascular event within 3 months before screening or randomisation

6. Heart failure, New York Heart Association (NYHA) class IV

7. Treatment with glucose lowering agent(s) other than stated in the inclusion criteria in a period of 6 weeks before screening. An exception is short-term treatment (≤7 days in total) with insulin in connection with inter-current illness

8. Fasting Plasma Glucose (FPG) ≥ 13.9mmol/L

9. Screening calcitonin value ≥ 35 ng/L (pg/mL)

10. Estimated glomerular filtration rate (eGFR) < 60 ml/min/1.73 m2

11. Any disorder which, in the opinion of the investigator, might jeopardise subject's safety or compliance with the protocol